New DOL Regulation Will Help Savers Protect Themselves

Senior woman cookingIf you are saving for retirement or plan to do so in the future, a new regulation will help protect your hard-earned savings!

On Wednesday, the Department of Labor updated the definition of retirement investment advice and closed loopholes that permit some retirement investors to steer clients into investment products that aren’t in their best interest. Now, anyone offering individualized retirement investment advice must act under a fiduciary standard, meaning they must provide impartial advice in their client’s best interest. It is good news for Latinos and other small savers, as they are least able to absorb the shock of increased fees and decreased returns often seen with conflicted retirement investment advice.

Many Americans struggle to save enough for retirement. Latinos have the smallest retirement account balances of any group and often lack access to employer-sponsored retirement savings plans. They are also much younger than the general population, and as more enter the workforce—expected to comprise 18.6% of the labor force by 2020—it is essential that the retirement savings environment ensures the security of their nest egg and minimizes retirement account losses due to high fees and low returns on investments.

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NCLR has been working with the Save Our Retirement coalition to ensure that federal regulations adequately protect retirement savers. On Wednesday the group issued a press statement commending Labor Secretary Thomas Perez and the Department of Labor for their work to ensure retirement security for all Americans. NCLR applauds the Department of Labor for releasing a final rule that reflects concerns from industry stakeholders, while maintaining crucial protections for Americans trying to save for retirement.

NCLR was at the release event this week, hosted by the Center for American Progress. See some highlights below:

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